X owes Y Rs. 20,000 but this debt is barred by Limitation Act.X executes a written promise to pay B Rs. 15,000 on account of debt. This is

All India Bar Examination (AIBE) 6-VI Previous Year Question Papers with Answers

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28.

X owes Y Rs. 20,000 but this debt is barred by Limitation Act.X executes a written promise to pay B Rs. 15,000 on account of debt. This is

A: Invalid

B: Void

C: Valid

D: Voidable

The answer is: C

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Explanation

The correct option is C: Valid.

According to Section 25(3) of the Indian Contract Act, 1872, a promise made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits, is a valid contract.

Therefore, X's written promise to pay Y Rs. 15,000 on account of the debt barred by the Limitation Act is a valid contract and can be enforced by Y. However, Y can only claim Rs. 15,000 and not the original amount of Rs. 20,000 as per the new contract.